Meet a 23-year-old millionaire who canceled his plan to move to San Francisco because of a billionaire tax he might never have to pay

At 23, Emil Barr had already amassed a fortune as the founder of Flashpass, a company that helps government agencies connect people with work. He had signed a lease to move to San Francisco a year ago, drawn by the city's booming investors and AI scene. However, after a closer look at California's regulatory and tax environment, he reconsidered his decision.

While he wouldn't be directly impacted by the proposed billionaire wealth tax, Barr concerns it could lead to higher taxes for millionaires like him and make California a less attractive place for entrepreneurs. He attributed his decision to the "anti-entrepreneurial" political rhetoric in California, rather than immediate financial concerns.

This decision highlights a debate that divides California: should taxing its wealthiest individuals help fund essential services, or deter businesses from setting up shop in the state? Supporters argue the tax could replace lost federal healthcare funding, while opponents warn of a potential brain drain. Proposition 40, which would impose a 5% tax on qualifying billionaires who were California residents on January 1, 2026, is on the ballot for November 3.

The measure has garnered support from Nobel Prize-winning economists, but Gov. Gavin Newsom opposes it, as does Google cofounder Sergey Brin. While some billionaires see the proposal as a way to fund healthcare without sacrificing talent, others fear it could discourage entrepreneurship. The debate extends beyond California, as states invest in public services that help businesses grow but risk losing revenue when residents move away.